Market Target Size
Personalized Gifts Sub-Market
For this topic, we analyzed a related sub-market which is called
personalized gifts from 2018 to 2019, with a forecast for 2020 and
2026
expressed in million U.S. dollars. This was somehow related to guide us into
the gifting industry workaround.
According to estimates and forecasts, the global personalized gifts market
is set
to increase considerably over the coming years: in 2019, the worldwide
personalized
gifts market was valued at about 23.5 billion U.S. dollars. By 2026, the
market size
is projected to grow to an estimated 34.3 billion U.S. dollars.
Research article is from Statista.
Gift Retailers Sub-Market
In order to explore another sub-market, we also have the possibility to
become
retailers to increase our profit margin.
The gifts retailing market is estimated to grow at a CAGR of 3.01% between
2022 and 2027.
The size of the market is forecast to increase by USD 13,491.69 million.
The growth of the market depends on serval factors, including the rise in
demand for seasonal decorations and a growing gifting culture, the growing
popularity of private-label brands and expansion in distribution channels
and social media marketing.
This report extensively covers market segmentation by distribution channel
(offline and online), product (souvenirs and novelty items, seasonal
decorations, greeting cards, giftware, and other gift items), and geography
(Europe, North America, APAC, South America, and Middle East and Africa). It
also includes an in-depth analysis of drivers, trends, and challenges.
Furthermore, the report includes historic market data from 2017 to 2021.
Inspiration source is from this
Technavio article.
Affiliation Sub-Market
As we have already mentioned, we will generate our profit from affiliation
links with other retailers,
therefore we have also analyzed affiliation market size.
We want to scale things up by building our own market and gain exposure from
advertisements as well.
As it is shown above, from only $2.5 billion in 2012, the spending for
affiliate marketing has
continued to increase year by year, which suggests that more businesses are
incorporating affiliate marketing in their campaigns.
This aspect can only encourage us to proceed with this method of
monetization
for our business as well.
Blog source is from
Influencer Marketing Hub.
Players & Potential Competitors
Our target market is not defined exactly due to the fact that we want to
solve
a problem that is not implemented yet, therefore this fact will create a new
"market".
Possible competitors might be the greatest retailers for objects in general,
such as
Macy's, JCPenney, Sears Holding, and House of Fraser. These 4 competitors
offer a variety of
gift products through their gift retailing stores. The presence of numerous
players in the market increases the market competition, which in turn, can
make
people use the already known shops for finding gifts.
As for affiliate marketing, we encounter the problem that there are globally
known
retailers such as Amazon Marketplace, Ebay etc. which can be challenging to
get in touch
with.
To determine an aproximate range number, the list can be infinite, but over
6
competitors adding from all the sub-markets.
Macy's
Macy's is a chain of stores which are dedicated for all kind of decorations
and
gifts
in general. Its market share for 2022 Q3 is about 1.96% according Google
statistics.
JCPenney
As Macy's, JCPenney targets the same market and uses the same concept but
recently
it has suffered a downgrade in its sales and income. Its market share for
2020
Q3 is about 0.55% according Google
statistics which is way lower than Macy's.
Amazon Marketplace
To include a company from affiliate marketing, we chosen Amazon as it is the
leader of the market.
According to Wikipedia,
Amazon
Marketplace is an e-commerce platform owned and operated by Amazon
that enables third-party sellers to sell new or used products on a
fixed-price online marketplace alongside Amazon's regular offerings. Using
Amazon Marketplace, third-party sellers gain access to Amazon's customer
base, and Amazon expands the offerings on its site without having to invest
in additional inventory.
In 2021, its market share was up to 50% which is enormous and demonstrates
that is very used and much trusted from the users.
Our Market Share for 5 Years
We estimate our market shares at the first 2 and a half years to be around 0.5%
up
to
1.5%. After this period we can think of 2%, taking in consideration that there
can be a lot of options for searching a gift and most of the well-known
companies
which activate in gifting industry have around 2% per quarter.
Market Capital
As total market value, we have thought about 500.000$.
Our goal for 5 years period is that every year to see the market value
increasing with
100.000$, if we bring more value & features to our app.
Conclusions
Regarding the growth of affiliate businesses in the latest years and the
ordinary problem
that all people struggle with, we can sum up with a good and positive
perspective about this application. Its an idea that can be exploited in so
many ways and easy to monetize and that does not require a huge investition
at the beginning.